Schneider Electric states that by combining APC with its MGE UPS Systems subsidiary, it will become a global leader in the sector. APC is strong in small and medium UPS systems, but its profitability has been negatively affected by the need to develop large systems. Schneider expects the merger with MGE UPS Systems to help APC improve profitability on its large systems.
Schneider expects to record $3 billion of additional value to its financials beginning in 2007. The turnaround plan for APC includes generating cost reductions from “synergies” in purchasing, research and development, support functions, sales, services and the like to the tune of $220 million—70 percent to be achieved by 2009.
